Getting a business loan in Pakistan seems a really difficult and impossible task especially when you have just started your business or plan to launch your idea shortly.
Most of us don’t about the opportunities and sources to fund our business ideas. It results in frustration and helplessness among new/startups and eventually in the form of failure of their dreams.
These banks and organizations etc giving Business Loan In Pakistan:
- Government Loans For Small Business In Pakistan | Business Loan In Pakistan Online Apply
- Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS)
- Kamyab Jawan Scheme | Youth Entrepreneurship Scheme (PMKJ-YES)
- Private Loan Lenders In Pakistan | Non-Profi Organizations
- Akhuwat Foundation Business Loan
- Pakistan Poverty Alleviation Fund Interest-free Business Loan
- Alkhidmat Foundation Business Loan
- Business Loan From Bank In Pakistan
- Standard Chartered Small Business Loan
- Meezan Bank Small Business Loan
- Bank Alfalah Small Business Loan
Luckily, there are plenty of sources to fund their new business or existing one in Pakistan, where anyone can get urgent cash to fund their business.
In this article, we will highlight key sources to get business loan in Pakistan, their eligibility, application process, and the amount of funding that you can get. So, let’s start our guide!
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Startup Business Loan In Pakistan | Business Loan In Pakistan Online Apply
Table of Contents
- Startup Business Loan In Pakistan | Business Loan In Pakistan Online Apply
Recommended Reading: How To Get SME Loan In Pakistan (Government+Private Sector)
Government Loans For Small Business In Pakistan | Business Loan In Pakistan Online Apply
Business Loan In Pakistan: The Government of Pakistan has introduced a range of initiatives and programs that offer substantial financial aid to small businesses. Notably, two significant programs stand out:
Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS)
This flagship initiative seeks to empower the youth and agricultural sectors by providing accessible financing options. Under this scheme, individuals can apply for loans ranging from a few thousand to several million rupees.
The flexibility of loan amounts accommodates a wide spectrum of business needs, from modest startups to more established enterprises. The program’s inclusive approach aims to encourage a diverse range of entrepreneurs to contribute to the nation’s economic progress.
Recommended Reading: 5 Easy Ways To Get Startup Business Loans In Pakistan | Startup Loan In Pakistan
Kamyab Jawan Scheme | Youth Entrepreneurship Scheme (PMKJ-YES)
Geared towards empowering the country’s young population, the Kamyab Jawan Scheme offers a comprehensive platform for youth entrepreneurship. Through this initiative, aspiring entrepreneurs can access loans ranging from PKR 5 lakh to an impressive 75 lakh.
This substantial funding is designed to fuel business growth and expansion, with a maximum repayment tenure of 10 years. The scheme not only provides financial assistance but also supports capacity-building efforts, ensuring that recipients are equipped with the necessary skills and knowledge to make their businesses thrive.
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Private Loan Lenders In Pakistan | Non-Profi Organizations
Business Loan In Pakistan: When seeking financial support for business in Pakistan, individuals have the option to explore offerings from private loan lenders as well as reputable non-profit organizations. Here, we outline some prominent entities and their distinctive features:
Akhuwat Foundation Business Loan
Akhuwat Foundation stands as a beacon of philanthropy, providing interest-free microfinance solutions. The foundation’s business loan program aims to empower small entrepreneurs by offering loans with zero interest.
Loan Amounts: Varying from modest sums to more substantial amounts, depending on the specific business requirements.
Key Services: Beyond financial assistance, Akhuwat Foundation offers mentorship and training, equipping borrowers with valuable skills and knowledge to enhance their business acumen.
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Pakistan Poverty Alleviation Fund Interest-free Business Loan
As a pivotal player in poverty reduction, the Pakistan Poverty Alleviation Fund (PPAF) extends interest-free business loans to uplift underserved communities.
Loan Amounts: Tailored to cater to different business scales, these loans empower entrepreneurs with accessible financing solutions.
Key Services: PPAF goes beyond loans, fostering an ecosystem of support through capacity-building programs and mentorship, fostering sustainable business growth.
| Statistics | Numbers |
|---|---|
| Presence in 147 districts across Pakistan | 137 Partner Organizations |
| Microcredit loans provided | 8.4 million loans |
| 60% loans to women | 80% financing to rural areas |
| Interest-free loans provided under Interest-Free Loan Programme | 2,460,000 loans |
| 54% women beneficiaries | |
| Productive assets transferred | 196,400 assets |
| 64% women beneficiaries | 60 poorest districts covered |
| Health, education, water, and infrastructure projects completed | PKR 38,900 projects |
| Community Organizations and Credit/Common Interest Groups | 586,900 organizations/groups |
Alkhidmat Foundation Business Loan
Alkhidmat Foundation, committed to humanitarian causes, provides interest-free loans to enable entrepreneurship.
Loan Amounts: The foundation offers varying loan sizes, ensuring that entrepreneurs from different backgrounds can access financial aid.
Key Services: Alkhidmat Foundation supplements loans with skill development workshops and business training, nurturing the long-term success of
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Business Loan From Bank In Pakistan
Business Loan In Pakistan: When it comes to obtaining business loans in Pakistan, several prominent banks stand out as reliable sources of financial support. Here, we present some of the most notable options, each with its distinctive features:
Standard Chartered Small Business Loan
Recognized as a premier choice for small business loans, Standard Chartered offers substantial financing opportunities.
Loan Amount: Entrepreneurs can secure financing of up to PKR 50 Million from Standard Chartered for their business ventures.
Eligibility Age Range: Applicants between the ages of 45 to 60 years are eligible to apply, ensuring accessibility for a broad range of experienced entrepreneurs.
Meezan Bank Small Business Loan
Meezan Bank emerges as a reliable partner for small and medium-sized enterprises (SMEs) seeking financial backing.
Loan Amount: SMEs can access funding up to PKR 25 Million, while Medium Enterprises (MEs) can secure the same amount for their business growth.
Age Limit: Aspiring borrowers should ensure their age does not surpass 60 years, aligning with Meezan Bank’s commitment to fostering dynamic entrepreneurship.
| Type of Charges | Salaried | Businessmen |
|---|---|---|
| Processing Charges (Up Front) | PKR 2,500 | PKR 2,500 |
| FED on Processing Charges @ 13% to 16% | PKR 325 @ 13% | PKR 325 |
| Income Estimation Charges | Not Applicable | At Actual |
| Documentation Charges | At Actual | At Actual |
| Old Vehicle Valuation Charges | PKR 2,000 | PKR 2,000 |
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Bank Alfalah Small Business Loan
Bank Alfalah offers a diverse array of small business loans, tailoring financing options to meet the unique needs of entrepreneurs.
Loan Amount: The loan amount varies based on the applicant’s profile, providing flexibility for startups and existing businesses. On average, loans of up to PKR 15 Million can be secured.
Age Limit: Entrepreneurs can apply for loans until the age of 60 years, making Bank Alfalah’s offerings inclusive and accessible.
Pros And Cons Of Getting Business Loan In Pakistan
Pros Of Getting A Business Loan In Pakistan
- Capital Infusion for Growth: One of the primary benefits of obtaining a business loan in Pakistan is the infusion of capital it provides.
- Business Expansion Opportunities: With the availability of funding through business loans, entrepreneurs can seize growth opportunities that may otherwise be unattainable.
- Improved Cash Flow Management: Business loans can help in better cash flow management, especially during periods of slow revenue generation or unforeseen expenses.
Cons Of Getting A Business Loan In Pakistan
- Debt Burden: One of the significant downsides of taking on a business loan is the potential burden of debt.
- Interest and Fees: Business loans often come with interest rates and various fees, such as processing fees and prepayment penalties.
- Risk of Default: In cases where a business is unable to generate sufficient revenue to meet loan obligations, there’s a risk of defaulting on the loan.
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FAQs | Business Loan In Pakistan
How do I get a Government loan to start a business?
The easy way to get a loan is by applying for Prime Minister Kamyaab Jawan-Youth Entrepreneurial Scheme (PMKJ-YES).
Which bank gives loans for business in Pakistan?
Now Almost all the banks give business loans in Pakistan once your application is approved in the PMKJ-YES program.
What are the advantages of obtaining a business loan in Pakistan?
Capital for Growth: Business loans provide the necessary capital to fuel your business’s expansion, hiring, and innovation efforts.
Expansion Opportunities: These loans enable you to seize growth opportunities by entering new markets or diversifying your product/service offerings.
Cash Flow Management: Business loans can help you maintain a steady cash flow, ensuring you can meet regular financial obligations even during slow periods.
What are the potential downsides of getting a business loan?
Debt Burden: The borrowed funds need to be repaid, potentially straining your business’s finances, especially if you face challenges or fluctuations in revenue.
Interest and Fees: Business loans come with interest rates and fees that can impact the overall cost of the loan, affecting your business’s profitability.
Risk of Default: If your business can’t meet loan obligations, defaulting can lead to legal actions, credit score damage, and potential loss of collateral assets.
Best banks to get business loans in Pakistan?
Standard Chartered: Known for its comprehensive small business loan offering, with a maximum financing of up to PKR 50 Million.
Meezan Bank: Offers SMEs and Medium Enterprises loans of up to PKR 25 Million to foster entrepreneurship and growth.
Bank Alfalah: Provides tailored loans with loan amounts averaging up to PKR 15 Million, accommodating diverse business needs.
How do government initiatives support business loans in Pakistan?
PMYB&ALS: The Prime Minister’s Youth Business & Agriculture Loan Scheme offers accessible financing options for youth and agriculture sectors.
PMKJ-YES: The Kamyab Jawan Scheme focuses on youth entrepreneurship, offering loans from PKR 5 Lakh to 75 Lakh.
PPAF Interest-free Loan: The Pakistan Poverty Alleviation Fund extends interest-free business loans to uplift underserved communities.
What role do non-profit organizations play in providing business loans?
Akhuwat Foundation: Offers interest-free microfinance solutions, providing loans with a focus on mentorship and training.
Alkhidmat Foundation: Provides interest-free loans and additional support through skill development workshops for aspiring entrepreneurs.
Recommended Reading: How To Get SME Loan In Pakistan (Government+Private Sector)
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